Which of the Following Is the Best Example of Adverse

Multiple Choice

Which of the following is the best example of adverse selection?

A) Smokers are more likely to obtain health insurance.
B) Safe drivers tend to get auto insurance.
C) All drivers are required to have auto insurance if they are to register their cars legally in Connecticut.
D) Both healthy and unhealthy people tend to buy life insurance.
E) Given the existence of government-funded flood insurance, people continue to build homes in floodplains.